Multibreeder signs loan

Multibreeder signs loan

JAKARTA (JP): PT Multibreeder Adirama Indonesia, a poultry company listed on the Jakarta Stock Exchange (JSX), signed an agreement in Singapore yesterday on a syndicated credit facility worth US$15 million.

Suryo Yusuf, a director of Multibreeder, told reporters here that the credit facility, arranged by the Singapore branch of Sanwa Bank Ltd., would be used to finance the expansion of the company's day old chick production.

"The annual DOC production capacity will be increased from the present 80 million to 150 million within three years," he said, adding that three hatcheries will be established early next year in order to support the production expansion program.

He said that Multibreeder, which at present operates a number of hatcheries in West and East Java, Bali and Lampung, plans to further expand its operation to North and West Sumatra, Sulawesi and Kalimantan.

"A survey is now underway to find suitable sites for hatcheries in North and West Sumatra," he said.

The credit facility will mature in three years and will carry an interest rate of about two points above the three-month Singapore Banks Offered Rate, now at 6.375 percent per annum.

Suryo said the credit facility, managed by the Singapore branch of The Long-Term Credit Bank of Japan, was oversubscribed by 20 percent.

Participating banks in the syndicated loan include the Jakarta branch of ABN Amro Bank, the Singapore branch of BNP, the Singapore branch of Credit Lyonnais and the Singapore branch of Rabo Bank Netherlands.(hen)